The Political Economy of China’s Technological Rise in the Civilian and Strategic Sectors

This project focuses on the corporate governance institutions through which the Chinese civilian and strategic economies are managed. A particular emphasis is the broadening array of financial channels being used to fund long-term development.
A fundamental bottleneck holding back the Chinese strategic and defense science and technology system’s capacity for innovation until now has been its almost complete dependence on the state for funds. However, far-reaching changes in the economic and financial systems have given the Chinese industrial economy access to a much broader range of financial sources.
Within the past few years, new capabilities developed in the civilian economy have started to be adapted to the strategic economy, addressing critical weaknesses that have been apparent to Chinese authorities for years.

Research Agenda

  1. Examine ownership, control, and incentive issues within the state sector
  2. Look at broadening array of financial channels to fund the strategic economy’s growth
  3. Examine emerging structure of interest groups within the state industrial sector
  4. Explicitly define differences in strategic and defense industry governance structures

Project Leads

Tai Ming Cheung
Barry Naughton
Dieter Ernst